Complaint Review: Key Bank Corp

I am with the original poster of this rip-off report.  Although, the initial reply of "use a register" seems to make sense.  Using a register will not matter if KeyBank is Re-Ordering the transactions from greatest to least.  There are current lawsuits with KeyBank and other banks regarding this practice.  If I wanted to use a register, guess what? I would be writing checks.  However, it is 2011 and the bank has the ability to NOT put through a transaction if there is insufficient funds.  Whatever happened to the customer is always right, and "having it your way"?  I do not want to be able to spend funds that I do not have.  Don't give me the option.  Although KeyBank has updated their overdraft protection, the previous poster is correct.  These updates do not apply to credit transactions.  I am all for AUTO deductions causing overdrafts, but credit transactions?  How are they different than debit transactions? Either way the bank knows if the funds are there or not.  Don't put this back on the consumer, these law suits are not from millions of unsophisticated consumers, they are from millions of people that work hard for their money and are tired of being ripped-off.  Thank you, and good day.

"It was my responsibility to keep my log book and know that I was overdrawn."

  So, did you do that?   Keeping an accurate register is the best way to keep this from happening.   Online balances are not designed to replace your recordkeeping.  The bank's computer has no idea what checks or automatic payments are going to hit your account until they do.   Your check register should account for that.

It was my responsibility to keep my log book and know that I was overdrawn.

- It is not the banks responsibility to know how much you have spent.  For various reasons it is impossible for the bank to know what you have spent until the merchant submits the transaction to them.  Depending on various factors this may be 1-3 Days(or longer). 

Now, banks are going to give you the option to "opt-out" of overdraft coverage, and I highly suggest if you don't want to manage your account you opt-out.  So when you attempt to use your Debit Card or ATM if there is not currently enough available in your account it will be declined at the Point-of-Sale.

However, this does not guarantee you will never overdraft.  In fact it may cause you additional issues that you will not like.  The "opt-out" only covers Debit and ATM Transactions, it does not cover Check or ACH(Auto Debits).  Both checks and ACH transactions are submited during the nightly batch processing.  So until that time the bank has no idea you spent the money.  Which means that if you write a check and "think" you have more money because you don't see it on-line, the bank also still thinks you have money available and they will approve the Debit Card transaction. But when the check comes in overnight you would be overdrafted.  By regulation they can not deny the approved Debit Card transaction so that must be paid.  However, they still have the option to pay or not pay the check.  If they decide to pay the check they will hit you with the OD fee.  If they decide to not pay the check it will be returned as an NSF check and now the only difference is that instead of paying the OD fee to the bank you are paying an NSF fee to the bank AND a returned check fee to the merchant.  Not to mention that the merchant may now charge you late fees or higher interest for the returned payment.  In addition some merchants are going directly to filing charges for writing a bad check.  If that happens you will be thinking it was a great bargin when you only had to pay the OD fee.

So in short, follow the banks advise.  Keep a Register.  It really is not that tough to write down every transaction as you make it.  I can guarantee you that it would have taken less time than going on-line constantly to check your balance and having to deal with the after effects of the overdrafts.